As we previously noted, health technology funding is experiencing robust growth. We've now gone one level deeper in our analysis on our Health Technology Report and Research Platform and determined that the health technology sector is starting to mature.
This conclusion comes from two key observations:
- Funding amount percentages showed a slight shift to later stages
- Funding count percentages showed a clear shift to later stages
We’ll explain these key observations with some graphics and discussions below.
To help set the stage, the graphic below highlights health technology funding amounts over time. As you can see, the sector’s overall funding demonstrated consistent growth.
Health Technology Funding Amount Percentages Shifting Slightly to Later Stages
Let’s examine the health technology funding amounts by round as a percentage of the total funding amount by year.
The above graph indicates that there has been a slight shift to later-stage funding. In 2012, Seed and Series A funding amounts accounted for around 25% of total funding. By 2017, that total had dropped to under 20%. Consequently, the funding amounts from Series B onward grew from around 75% of total funding to over 80%.
Would the funding count percentages confirm this trend? Let's examine in the the next section to find out.
Health Technology Funding Count Percentages Clearly Shifting to Later-Stage Events
The below graph shows the health technology funding event counts by round as a percentage of total events.
This graph paints a clearer picture of the funding shift than the previous funding amount graph. In particular, Seed funding count percentage decreased by more than half its size from 53% to 23%. The funding count percentages in all other rounds increased by various magnitudes from 2012 to 2017.
Conclusion: Health Technology Sector Matures As Funding Shifts to Later Stages
In summary, we have seen health technology funding amounts and funding event counts shift from the early-stage rounds to mid and late-stage rounds. These observations led us to conclude that the health technology sector is starting to mature.